Haven been through the Atlanta station quite a few times, I agree it's a real problem.
That said, I think one solution that could have been done years ago is to consider a partial upgrade of the current station.
Basically had they built basically an extension of the existing station over the platform that was say 4 cars long with stairs and an elevator at one end they could have solved the baggage solution and increased boarding and unboarding speeds.
Heck, at that point you could probably replace the existing barrier at track level with a solid one and completely separate the two tracks, allowing NS to continue to use that track.
That said, I think two short-term upgrades in terms of service would be:
1) A day train between ATL-WAS. Leaves ATL at 7:00 AM or so. The station is already staffed and NS already has to have an open window in traffic at the station. It then arrives at night at a similar train. No sleepers necessary, no baggage car. Gets you some more traffic along the route that gets skipped at night.
2) Make a train 419 and 420 that separates at ATL (much like the LSL or EB) and runs the 2nd leg either north to Chattanooga, or to a point south like Montgomery.
Atlanta needs a LOT of work, but I think in the meantime, a couple of easy upgrades, rather than wait for the uber solution.
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